Gold may extend fall for seven-straight trading week on fear that Federal Reserve may hike interest rate in this year following better than expected economic data and on weak investment demand, said analysts.
"Gold will fall on US rate hike fear and on weak investment demand," said Kaynat Chainwala an analyst with Angel Commodities.
Bullion prices will be under pressure as upbeat jobs data triggered fear that the Federal Reserve will be in course of raising interest rate in September.
United States jobless claims came at 267,000 for the week ended Jul 24 compared to analysts' estimate of 270,000 and 255,000 a week ago, a government data showed.
While, US gross domestic product annualized at 2.3% in second quarter compared to upward revision of 0.6% a quarter ago, a government data showed.
On Thursday, the Federal Reserve reiterated its resolve to hike rates later this year as the economy was poised for expansion and labour market was expected to improve further.
The central bank said it was seeing "solid" job gains and maintained its view that economic activity was expanding "moderately", with the risks to the outlook "nearly balanced".
"Growth in household spending has been moderate and the housing sector has shown additional improvement; however, business fixed investment and net exports stayed soft. The labour market continued to improve, with solid job gains and declining unemployment," FOMC statement said.
The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labour market and is reasonably confident that inflation will move back to its 2% objective over the medium term.
Prices of the yellow metal will also be down as gold exchange trade fund (ETF) investors remained on sidelines despite lower price showing weaker investor interest, said analysts.
Holdings of SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, fell on Monday to 680.15 tons to 684.63 tons on Friday, its lowest level since 2008.
Gold prices are also expected to fall next week on expection of strong dollar, said analysts.
Next week, dollar index, which measures the strength of greenback against its six major trading partners, expected to stay in the range of 98-98.5.
Gold for October contract traded in Rs 24,705-25,263 per 10 grams range in this week.
Resistance for October gold prices is seen at Rs 25,000-25,200 per 10 grams level and price may get support at Rs 24,350-24,100 per 10 grams level in next week, said Mihir Kansara a techinical analyst with Phillip Commodities.
Prices of the silver are also expected to fall next week taking cues from gold and base metal prices, said analysts.
In the last five trading sessions, silver for September delivery traded in Rs 33,566-34,250 per kilogram range.
Resistance for September silver prices seen at Rs 34,500-35,500 per 10 grams level and price may get support at Rs 32,900-32,300 per 10 grams level in next week,
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